Irked Jefferson County halts its work on pit-to-pier project over payment issue

By Jeff Chew, Peninsula Daily News

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PORT TOWNSEND — Jefferson County officials have stopped all work on an environmental impact statement for the Fred Hill Materials pit-to-pier project, saying the company owes it nearly $100,000.

Dan Baskins, Fred Hill Materials project manager, said a payment for $55,333.98 had been delayed but would be paid by Friday, while another payment — for $44,348 — would be paid by its due date of July 31.

He called the county's action politically motivated, and said officials were "acting in bad faith."

County leaders said Tuesday that they are open to renegotiating a contract with Fred Hill Materials to continue the process that would lead to the pit-to-pier project.

The Poulsbo-based company, which operates the Shine gravel pit, wants to build a 4-mile-long conveyor for gravel from the Shine pit hub to a 1,000-foot long pier to be built on the Hood Canal shoreline.

The company submitted applications to the county in 2003 for zoning, substantial development and shoreline permits.

The pit-to-pier environmental impact statement will address such issues as visual, archaeological, Navy concerns, and the general environmental impact on Hood Canal and its marine life, said Al Scalf, director of the county Department of Community Development.

Fallen behind
County leaders said that the company is late i paying invoices for county staff and private consulting work.

"The bottom line is, they're pretty far behind on their payments," said County Commissioner John Austin, D-Port Ludlow.

"We have obligations. We have to pay experts doing the work.

"We pay them on time,and if Fred Hill doesn't pay us, we are left holding the bag."

Baskins said that the latest payment was delayed by the company's accountant having a family emergency.

He estimates the company has paid the county almost $500,000 for invoices and fees so far.

Baskins said that Fred Hill Materials already has invested between $4.5 million and $5 million in the pit-to-pier project.

"The company will continue to spend millions more if they have to," he said.

Baskins said that sometimes the company questions billings.

Company officials will check what the firm is paying for, he explained.

If they have questions, they will await explanations before paying.

Monday action
Interim county Administrator Dennis Richards' said the commissioners directed him Monday afternoon to draft and forward a letter to the company's chief executive officer, Alex J. Hill.

The letter says the company is in violation of a July 2, 2007 agreement with the county.

The county is invoking the portion of that agreement that states "upon 60 days notice, either party to this agreement may terminate this agreement for any reason."

"In order to prevent a worsening of the county's situation, and based on your firm's failure to pay, the county is ceasing all work on the EIS and asking GeoEngineers to cease all work on the project too," Richards said in the letter.

". . . By copy of this letter, the county is suspending its contract with GeoEngineers and requests GeoEngineers to stop working on the Fred Hill Materials EIS."

An all-Republican Jefferson County commissioners in 2004 allowed a mineral resources land overlay on 690 acres zoned commercial forestland.

That permitted Fred Hill to mine gravel from the Thorndyke region south of State Highway 104 near the company's existing Shine Pit.

The gravel is used to make asphalt for roads and concrete.

The Western Washington Growth Management Hearings Board ultimately backed the county on the mineral extraction overlay.

John Fabian, representing Hood Canal Coalition and Olympic Environmental Council, has fought that element of Fred Hill Materials expansion plan and is challenging it in Superior Court.

Baskins said he believes Fabian prompted the county commissioners' Monday action.

Fabian 'shadow'
"Let's be blunt. It's the political season, and they are trying to appease the shadow commissioner once again: John Fabian," Baskins said of the Shine-area resident and retired astronaut.

Contacted Tuesday night, Fabian called Baskins' reference "a ludicrous and typical response to a difficult situation."

Fabian said he and others with the group routinely check on the company's environmental impact statement progress with the county Department of Community Development and do not discuss the matter with the county commissioners.

"This a matter between the county and a company that isn't paying its bill," Fabian said.

Scalf said that, despite such issues, the county is making progress on the environmental impact statement.

"It's been working well, our relationship with Fred Hill and the consulting team," he said.

"It's all been very professional. It's been content-rich."

County officials recently visited the project site, examining the conveyor belt path down to the beach and the bearing loads of material that would be moved.

Scalf, county Project Planner Michelle Farfan and Planning Manager Stacie Hoskings are working with Baskins, GeoEngineers and the consulting team on the project.

Baskins said the company would continue its "legal watching" of the Jefferson County commissioners.

"That's why we send our attorney up there every week," Baskins said.

"He's protecting our civil rights.

"If the commissioners attempt to thwart our civil rights, then we will let the courts figure it out."

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Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or jeff.chew@peninsuladailynews.com.

Last modified: July 22. 2008 9:00PM
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